What type of loan is secured by more than one parcel of real estate and allows for partial release of liens upon repayment?

A blanket loan is specifically designed to secure financing on multiple parcels of real estate. This type of loan allows the borrower to use several properties as collateral and provides the flexibility to release individual parcels from the lien as they are paid off. It is particularly useful in real estate development, where a developer can secure funding for multiple lots and gradually release them as each is sold or paid off.

This characteristic of being able to partially release properties is crucial for developers who want to free up individual parcels for sale while retaining financing for the remaining properties. The other loan types mentioned do not offer this same structure or feature, making the blanket loan uniquely suited for scenarios involving multiple pieces of real estate.